Role of Blockchain Technology in Protecting Intellectual Property

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NFTs (non-fungible tokens) are the most significant issue in art and intellectual property right now, and some are waiting for the craze to go down. However, due to its dependence on blockchain technology, NFTs’ basic functionality has far-reaching consequences for trademark and copyright protection. A fundamental grasp of blockchain technology can help you comprehend how and why this works.

What is Blockchain Technology?

Blockchain technology is what the name implies: a series of blocks linked together. Each block has its own “hash” or code, and tampering with one causes the hash to change, impacting subsequent blocks. In practice, this implies that any effort to modify the information recorded in the Blockchain by anybody along the supply chain will be immediately identifiable. Multiple stakeholders can store data in a block, which is then passed on to the next stakeholder, who adds another block, and so on.

How does Blockchain work with Digital Products?

When a customer gets digital or physical goods, it is linked with some token–a unique tag, QR code, or RFID chip, for example–that includes or is connected to a tamper-proof chain of data. This data gathering is also referred to as a “distributed ledger,” The data collected may contain source information, vendor information, care instructions, regulatory papers, and a variety of other forms of information that the end consumer may want or desire. In reality, this would look like this: a consumer scans a QR code, which directs them to a unique website containing information regarding the copy of physical or digital goods.

Additionally, rights holders may log in and see individual sales or scan the QR code on the backend. It is critical to understand that there is no centralized blockchain. There are several platforms and service providers. Therefore rights holders should do due diligence before committing to a specific technology.

NFTs and Blockchain Technology

Each piece of NFT art has a unique identity that the author “mints” into the NFT. It ensures that credit information is permanently part of the NFT, and in certain situations, royalty payments may be automatically sent when the art is shared or purchased. The NFT developer may monitor transactions and other NFT-related events using the blockchain provider of their choice.

Copyright protection and Blockchain Technology

Music and other forms of copyright-protected media are among the numerous types of property copyright owners use Blockchain to safeguard. A blockchain-based system may help copyright holders track their payments as streaming media becomes the norm.

To protect music files and other forms of copyright-protected property, copyright owners are also using the Blockchain. Blockchain technology can help safeguard streaming media from unauthorized sharing and audit the royalties paid to content creators.

Trademark Protection and Blockchain Technology

Trademark owners will also be able to make use of blockchain technology to safeguard their trademarks. For example, a product’s unique QR code may be scanned or entered by the consumer, and a rights owner would know whether the customer was sent to the owner’s genuine website if the customer scanned or entered an incorrect QR code. This data would be kept on a blockchain. Blockchain technology has started to provide advantages for brand and trademark protection. Over the last few years, a few prominent applications of Blockchain in this capacity have emerged:

1. Counterfeit Products:

Block chains may prevent counterfeit goods from reaching the consumer market, providing premium brand trademark owners with a degree of assurance about their products’ legitimacy. For instance, each luxury-branded item is assigned a unique identification, such as a QR code. When a person purchases a product, they may use the QR code to view its certificate online. This certificate has been cryptographically signed by the brand and everyone else in the supply chain, ensuring the product’s legitimacy. Additionally, resellers of luxury items might profit from the usage of Blockchain to ensure the legitimacy of their products.


2. Enhancing the Trademark Registration Process’s Efficiency:

Throughout the lifespan of a trademark application, the applicant must demonstrate the use of the mark, either as proof of use during the application process or to prove acquired distinctiveness. Suppose evidence of actual trademark usage, including frequency and use dates, could be uploaded to a blockchain and registered with the USPTO. In that case, it could be readily shared and made publicly accessible on a blockchain. It might alleviate difficulties with the possibility of misunderstanding by improving the efficiency and reliability with which a registered mark is checked.


There are many who argue that NFTs and blockchain are overhyped or fashionable, which may be the case with the current surge of high-priced digital art. However, the fundamental functionality of blockchain is likely to endure and become a widely utilized tool in rights holders’ efforts to safeguard their intellectual property in a future where duplication is simpler and anonymous infringers are more difficult to trace.

The purpose of this article is to provide a general overview of the subject. Regarding your situation, you can seek expert guidance. HHS lawyers and legal consultants specialize in dealing with cases relating to the infringement of Intellectual Property. You can contact us for further consultation.


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